Table of Contents LETTER TO THE GOVERNOR ARIZONA RACING COMMISSION 1 AWARDS 2 DEPARTMENT OF RACING Department Organization Chart Commercial and County Fair Racing Chart 3 4 COMMERCIAL RACING Commercial Racing Permittees, Tracks and Permit Terms Chart Commercial Tracks Chart 5 6 COMMERCIAL HORSE RACING Investigations, Licensing and Stewards Charts Director Chart, Breeders’ & Stallion Awards and Racehorse Adoption Charts Commercial Horse Tracks Chart Rillito Park Chart Turf Paradise Chart Yavapai Downs Chart 7 8 9 10 11 12 COUNTY FAIR RACING Betterment Payments to Counties, Investigations and Licensing Charts Stewards and Director Charts County Fair Tracks Chart County Fair Racing Schedule and Statistics 13 14 15 16 17 COMMERCIAL GREYHOUND RACING Investigations, Licensing and Stewards Charts Director, Inspections and Breeders’ Awards Charts Greyhound Adoption Chart Commercial Greyhound Tracks Chart Apache Greyhound Park Chart Phoenix Greyhound Park Chart Tucson Greyhound Park Chart 18 19 20 21 22 23 24 TELETRACKING Teletrack Handle Chart Teletracking Activity – Commercial Horse Meets Chart Teletracking Activity – County Fair Meets Chart Teletracking Activity – Greyhounds Meets Chart 25 26 27 28 RACING REGULATION Investigations and Licensing Charts Stewards, Director and Drug/Alcohol Testing Charts Equine & Canine Drug Testing Charts License by Category Chart 29 30 31 32 BOXING REGULATION Sanctioned Events and Licensing Charts Investigations Chart 33 34 FINANCIAL ISSUES Department of Racing Budget Department Budget Chart, Department of Racing Revenues, and Distribution of Revenues to the Eight Separate Funds and Maximum Dollars Allowed Chart Distribution of Department of Racing Revenues Chart Department of Racing Revenues by Category Chart Appropriated and Non-Appropriated Funds Chart Department of Racing Pari-Mutuel Tax and Hardship Tax Credit Projections Chart Hardship Tax Credit Chart Track Capital Improvements Chart ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 35 36 38 39 40 41 42 43 ARIZONA DEPARTMENT OF RACING LUIS A. MARQUEZ JANET NAPOLITANO GOVERNOR DIRECTOR September 25, 2008 The Honorable Janet Napolitano Governor of the State of Arizona 1700 West Washington Street Phoenix, Arizona 85007 Dear Governor Napolitano: It is my pleasure to submit the FY 2008 Arizona Department of Racing Annual Report. This report reflects statutory requirements as they relate to the Department’s regulatory, fiscal, and administrative mission. Last year, the Department regulated and supervised horse and greyhound racing, including pari-mutuel wagering at three commercial horse racetracks, three greyhound racetracks, fifteen county fair racing meetings, and over 80 teletrack wagering facilities throughout the State. The total pari-mutuel handle for all racing was $252.7 million, a decrease of $13.9 million or 5.2% from FY 2007. The total pari-mutuel tax receipts amounted to $429,592, a slight decrease of 0.4% from the prior year. Although the State’s fiscal situation required budget reductions and funds transfers during the year to balance the State’s budget, the Department was able to introduce management and efficiency improvements that are consistent with resources available and regulatory trends in the industry. With the continued support of your administration, our objective is to continue building the integrity and reputation of the pari-mutuel racing industry in Arizona. The Department is required by statute to submit recommendations for increasing state revenues from the regulation of the racing industry while maintaining the financial health of the industry and protecting its participants and the public interest. These are challenges that require cooperation between the industry and the Department. Several proposals have been pursued in the past to generate revenue from the industry to support statutory, administrative, and regulatory duties of the Department. The industry and the Legislature, however, have not supported these proposals. This coming year, the Department will again work with the industry and the Racing Commission to propose various mechanisms in which the racing industry provides additional funds to the State to support Department operating costs related to racing regulation. The Department will review its licensing fee schedule to modernize it, create efficiencies, and increase revenues comparable with other jurisdictions. Arizona’s licensing fees are among the lowest in the nation. The Department is committed to performing all statutory and regulatory duties in a manner that improves the reputation of the industry and respect for the agency. Your continued support is greatly appreciated. Sincerely, Luis A. Marquez, CPM Director 1110 West Washington, Suite 260 Phoenix, AZ 85007 Ph (602) 364-1700 Fax (602) 364-1703 www.azracing.gov ador@azracing.gov “AN EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION EMPLOYER” Arizona Racing Commission The Arizona Racing Commission was established in 1949 by the Arizona Legislature. The Racing Commission is responsible for issuing racing dates; preparing and adopting rules to govern racing meetings as may be required to protect and promote the safety and welfare of the animals participating in racing meetings; protecting and promoting public health, safety and the proper conduct of racing and pari-mutuel wagering; conducting hearings on applications for racing permits; reviewing applications for capital improvements at racetracks; and conducting hearings and other legal procedures on matters relating to racing licensees and the racing industry. Arizona Revised Statutes § 5-102 authorizes a five-member Racing Commission, who shall be appointed by the Governor pursuant to A.R.S. § 38-211. Appointment is for a term of five years. Paul Ulan, Racing Commission Chairman, was appointed to the Racing Commission in 2005 to serve as a public member. Mr. Ulan is the principal of Primary Consultants, L.L.C., a Phoenixbased market research consulting firm specializing in political campaign management, phone banks, public affairs and issue management. Mr. Ulan has specialized in bond and override elections for school districts and tax-related elections, performing a variety of services including polling, demographics and public relations. Erin Owens, Racing Commission Vice-Chair, was appointed to the Racing Commission in 2005 to serve as the representative of the Horse Racing Industry. Ms. Owens was raised in the thoroughbred racing industry in Arizona and her family actively participates in the Arizona Racing and Breeding Program. She spent several years in official positions at Canterbury Downs, San Juan Downs, Columbus Racetrack, and Turf Paradise. She currently serves as Secretary/Treasurer of the Association of Racing Commissioners International (ARCI) and owns her own business. Leslie A. Wootten was appointed to the Racing Commission in 2007 to serve as the representative of the Greyhound Racing Industry. Ms. Wootten’s family experience with greyhound racing dates back to the 1800s. Ms. Wootten is a historian of the sport and a regular contributor to the monthly magazine of the National Greyhound Association, as well as in Arizona Player: Gaming and Entertainment Guide. Ms. Wootten has taught creative writing at Central Arizona College and coordinated its Visiting Writers Series, a program supported by the Arizona Commission on the Arts. James N. Chilcoat, Sr. was appointed to the Racing Commission in 2005 to serve as a public member, and has served one year as Vice Chairman and one year as Chairman. Mr. Chilcoat retired from the Arizona Department of Public Safety after 30 years of service. During his career, he worked in Highway Patrol, Intelligence, Fiscal Management, Legislation, and retired at the rank of Assistant Director. Mr. Chilcoat has attended numerous law enforcement seminars and programs, including the FBI National Academy, to enhance his knowledge and expertise in several areas of criminal justice. Bob Ford was appointed to the Commission in 2001, has served as Vice-Chairman for two years and one year as Chairman. Serving as a public member to fill the seat vacated by Michael Vespoli, Mr. Ford comes from a family with over 50 years in the horseracing industry. Mr. Ford has worked at tracks in several positions, gaining first-hand knowledge that serves him well on the Commission. Retired from the City of Phoenix Fire Department, Mr. Ford currently serves on the City of Phoenix Planning Commission. ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 1 Awards HORSERACING INDUSTRY AWARDS The Racing Commission Horseracing Industry Awards Program recognizes individuals for service to the horseracing industry. The following awards were presented at the December 12, 2007 Commission meeting. Recognition of Excellence Award. Casey Faunce, Arizona Counties Racing Association Lifetime Achievement Award. Ralph and Carrie Fales, breeders, trainers GREYHOUND INDUSTRY AWARDS The Racing Commission Greyhound Racing Industry Recognition Program recognizes individuals for service to the greyhound racing industry. The following awards were presented at the December 12, 2007 Commission meeting. Lifetime Achievement Award. Clyde Clifton Gray, greyhound kennel owner, breeder (posthumously) Recognition of Excellence Award. Sylvia Arena, former Racing Commissioner, currently member of the Arizona State Veterinary Medical Examining Board DEPARTMENT OF RACING EMPLOYEE INNOVATIONS AWARDS The Department created a program to recognize employees who submit efficiency measures that could result in dollar savings for redeployment to other areas of operation. The following are the FY 2008 recipients. Employee Innovations Award. Violet "Pinkie" Smith, Acting Chief Racehorse Steward – Suggested screening process for reviewing criminal history cases to determine the extent of regulatory action required. The new process saved the agency $12,560. Employee Innovations Award. Victoria Rogen, Administrative Assistant – Streamlined fingerprint process by eliminating repetitive submission of unreadable prints. Will save the agency $25,000 in FY 2009. ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 2 Department Of Racing The primary mission of the Department of Racing is to regulate and supervise pari-mutuel horse and greyhound racing and wagering conducted in Arizona in order to protect racing participants and the wagering public. In addition, the Department regulates and supervises boxing events conducted in Arizona to protect participants in these events. GOVERNOR BOXING COMMISSION RACING COMMISSION DIRECTOR BOXING REGULATION ADMINISTRATION ENFORCEMENT & COMPLIANCE ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 3 RACING SERVICES COMMERCIAL AND COUNTY FAIR RACING Commercial Horse, Greyhound and County Fair Racing RACING STATISTICS FY 2004 Race Days/Performances (including 12 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days FY 2005 FY 2006 FY 2007 FY 2008 988 605 1,593 897 697 1,594 933 662 1,595 909 681 1,590 852 744 1,596 988 897 933 909 852 12,871 265,248 278,119 11,778 263,586 275,364 12,513 262,275 274,788 11,791 284,597 296,388 10,205 287,415 297,620 Attendance On-Track Off-Track Total Attendance 852,987 848,157 1,701,144 768,582 905,002 1,673,584 819,425 1,022,623 1,842,048 723,879 887,078 1,610,957 693,553 892,026 1,585,579 Pari-Mutuel Handle Average Handle per Race Day $165,786 $165,974 $178,946 $167,667 $158,359 Breakdown by location On-Track Handle Off-Track Handle $96,023,226 $168,073,643 $88,766,221 $175,795,847 $90,944,292 $194,474,484 $84,486,049 $182,104,065 $77,268,017 $175,472,915 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $78,573,084 $185,523,785 $264,096,869 $81,251,006 $183,311,061 $264,562,067 $87,686,434 $197,732,342 $285,418,776 $77,780,820 $188,809,295 $266,590,114 $66,643,403 $186,097,529 $252,740,932 $203,820,895 $204,344,382 $219,060,582 $203,766,212 $193,921,658 Total Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues $565,191 $483,901 $527,860 $431,437 $429,592 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Capital Improvement AGP Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit AGP-Hardship Tax (Transferred to PGP) Breakage Total Track Revenues $52,677,260 79,377 0 0 69,895 2,261,865 0 1,175,091 $56,263,488 $53,130,250 88,296 0 0 87,259 2,418,044 0 1,139,347 $56,863,196 $57,052,294 89,991 0 0 71,464 2,653,989 0 1,221,958 $61,089,696 $53,620,670 100,917 0 0 55,863 2,353,026 0 1,085,469 $57,215,946 $51,074,270 100,037 0 0 51,415 1,768,623 0 1,026,555 $54,020,900 Purses $20,497,445 $20,708,997 $22,314,331 $21,133,206 $22,246,607 Racetrack Trends at a Glance On-Track On-Track vs. Off-Track Handle Simulcast $250 $250 $200 $200 Million Million Source of Handle Live Off-Track $150 $100 $150 $100 $50 $50 $ $ FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2004 FY 2005 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 4 FY 2006 FY 2007 FY 2008 Commercial Racing The Department of Racing regulates and supervises all commercial horse and greyhound racing meetings and pari-mutuel wagering conducted on- and off-track in Arizona to enforce laws and regulations and to protect racing participants and the wagering public. In FY 2008, the Arizona Racing Commission approved three-year commercial racing permits for Apache Greyhound Park, Phoenix Greyhound Park and Yavapai Downs. Tucson Greyhound Park, Inc. filed a new application for commercial racing for calendar years 2008, 2009 and 2010. Pima County Horsemen’s Association also filed a new application for commercial racing at Rillito Park for the same time period. By statute, both Tucson Greyhound Park and Rillito Park may continue to operate under their current permits until the Arizona Racing Commission, upon recommendation by the Department, has finally ruled on the applications. Commercial Racing Permittees, Tracks and Permit Terms Permittee Track Permit Term American Greyhound Racing, Inc. Apache Greyhound Park 01/01/08 - 12/31/10 American Greyhound Racing, Inc. Phoenix Greyhound Park 01/01/08 - 12/31/10 Pima County Horsemen’s Association Rillito Park * 2008 Tucson Greyhound Park, Inc. Tucson Greyhound Park *01/01/08 - 12/31/10 TP Racing, L.L.L.P. Turf Paradise Race Course 06/01/06 - 05/31/09 Yavapai County Fair Association Yavapai Downs at Prescott Valley 05/26/07 - 09/04/09 * application pending ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 5 - 2010 COMMERCIAL TRACKS Commercial Horse and Greyhound Racing RACING STATISTICS FY 2004 Race Days/Performances (including 12 Charity Days) Live Race Days Dark Day-Simulcast only Total Race Days FY 2005 FY 2006 FY 2007 FY 2008 927 603 1,530 835 695 1,530 874 659 1,533 845 679 1,524 788 742 1,530 927 835 874 845 788 12,358 262,400 274,758 11,244 260,574 271,818 11,994 259,747 271,741 11,219 281,048 292,267 9,637 283,889 293,526 Attendance On-Track Off-Track Total Attendance 725,228 789,343 1,514,571 640,640 834,294 1,474,934 690,948 949,002 1,639,950 570,571 818,825 1,389,396 547,912 822,795 1,370,707 Pari-Mutuel Handle Average Handle per Race Day $160,457 $159,162 $172,643 $160,357 $150,869 Breakdown by location On-Track Handle Off-Track Handle $88,355,137 $157,143,398 $80,337,461 $163,180,209 $82,814,154 $181,847,949 $75,031,996 $169,352,518 $68,590,356 $162,238,621 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $72,812,408 $172,686,127 $245,498,535 $74,986,000 $168,531,669 $243,517,669 $81,471,551 $183,190,552 $264,662,103 $70,820,823 $173,563,691 $244,384,514 $59,962,992 $170,865,985 $230,828,978 $189,272,455 $187,771,621 $203,192,511 $186,927,263 $177,373,642 $565,191 $483,901 $527,860 $431,437 $429,592 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Capital Improvement AGP Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit AGP-Hardship Tax (Transferred to PGP) Breakage Total Track Revenues $49,022,251 79,377 0 0 69,895 2,261,865 0 1,075,131 $52,508,519 $48,956,413 88,296 0 0 87,259 2,418,044 0 1,026,349 $52,576,361 $52,948,454 89,991 0 0 71,464 2,653,989 0 1,110,798 $56,874,696 $49,230,357 100,917 0 0 55,863 2,353,026 0 968,928 $52,709,092 $46,717,237 100,037 0 0 51,415 1,768,623 0 917,242 $49,554,554 Purses $18,435,371 $18,523,133 $20,107,799 $18,520,580 $19,323,512 Total Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance Live On-Track vs. Off-Track Handle Source of Handle Simulcast $200 $200 $180 $180 $160 $160 $140 $140 $120 $120 Million Million On-Track Off-Track $100 $80 $100 $80 $60 $60 $40 $40 $20 $20 $ $ FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2004 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 6 FY 2005 FY 2006 FY 2007 FY 2008 Commercial Horse Racing The Department of Racing is responsible for regulating and supervising all commercial horse racing meetings, conducting investigations, issuing licenses, conducting equine and human drug testing, overseeing wagering, hearing appeals of decisions, conducting hearings on investigation referrals and race incidents, collecting revenues for the State, and distributing awards to program recipients. Investigations The Department investigates possible violations of racing laws and rules and imposes administrative sanctions on those determined to have committed violations. Investigation numbers listed below reflect the total number of investigations conducted for every incident and background investigation, which includes processing of fingerprints and any resulting false applications. Performance Measures Number of incident investigations Number of background investigations Total number of investigations conducted FY 2006 FY 2007 FY 2008 210 140 146 1,097 1,307 1,379 1,519 1,876 2,022 Licensing The Department issues licenses to participate in racing to those who are qualified and eligible. A background investigation is conducted for each license applicant who submits fingerprints as required by Department policy. Licenses are denied for those who are undesirable or statutorily prohibited from participating. Performance Measures Number of licenses issued Number of licenses denied Number of licenses revoked Percentage of license denials upheld on appeal FY 2006 FY 2007 FY 2008 2,229 9 189 99% 2,817 11 207 99% 3,692 7 108 86% Stewards The Board of Stewards is present on the permittee grounds on each day entries are being taken or racing is being conducted, representing the Department in all matters pertaining to the enforcement and interpretation of the rules adopted by the Department. The Stewards may impose civil penalties up to $1,000, suspend licenses up to 60 days, and refer matters to the Director with recommendations of further action, including license revocation. All races are observed and supervised to ensure that all participants comply with the rules of racing. Performance Measures FY 2006 FY 2007 FY 2008 411 99% 458 96% 347 96% 320 324 222 Yavapai Downs 74 134 125 Rillito Park (no commercial racing in FY 2007 & FY 2008) 17 0 0 Number of rulings issued Percentage of rulings upheld on appeal to the Director Rulings by Track Turf Paradise ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 7 Commercial Horse Racing Director The Director of the Department is required by statute to review all rulings issued by the Stewards. Individual licensees may also appeal a Stewards' ruling to the Director, and if not satisfied with the Director's order, to the Racing Commission. The Office of Administrative Hearings also hears matters referred by the Director. Performance Measures FY 2006 FY 2007 FY 2008 897* 10 7 2 916 1,067 77% 277 19 11 2 307 458 96% 249 116 4 19 393 248 75% 320 324 185 74 134 63 ** 0 0 Number of Director’s hearings Number of Administrative Law Judge hearings Number of Racing Commission hearings Number of Cases withdrawn/dismissed Total number of hearings Total number of orders Percentage of orders upheld on appeal to the Commission Orders by Track Turf Paradise Yavapai Downs Rillito Park (no commercial racing in FY 2007 and FY 2008 * Includes backlog of 591 cases. This number is not reflected in the Orders by Track ** Numbers not available Breeders & Stallion Awards The Department encourages and promotes horse breeding in Arizona through the administration of and distribution to recipients of funds available through Breeders and Stallion Awards Programs. Performance Measures Number of active registered breeders Percentage of registered breeders winning awards Number of registered horses Percentage of registered horses winning awards Quarter Horse Breeders’ Awards Thoroughbred Breeders’ Awards Stallion Awards FY 2006 FY 2007 FY 2008 3,279 8% 6,034 6.5% $34,585 $434,823 $37,374 3,380 3.5% 6,347 3.9% $82,260 $683,863 $35,388 3,459 2.5% 6,682 1.0% $99,928 $749,500 $96,369 Racehorse Adoption The Department provides grants to non-profit organizations to promote the adoption of retired racehorses in Arizona. The funds for this program are generated from a surcharge against all civil penalties assessed in connection with horseracing in Arizona. The program went into effect in 2005 and the first award was made in 2006. Performance Measures Number of grants awarded Amount of grants awarded FY 2006 FY 2007 FY 2008 1 $2,500 1 $1,890 1 $1,496 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 8 COMMERCIAL HORSE TRACKS Rillito Park, Turf Paradise, Yavapai Downs RACING STATISTICS FY 2004 Race Days/Performances (including 3 charity days) Live Race Days Dark Day-Simulcast Only Total Race Days FY 2007 FY 2008 201 242 443 207 239 446 185 252 437 188 252 440 208 201 207 185 188 1,866 44,178 46,044 1,872 46,735 48,607 1,875 47,514 49,389 1,674 48,881 50,555 1,706 50,688 52,394 415,823 543,899 959,722 380,465 581,299 961,764 432,654 683,821 1,116,475 328,492 592,070 920,562 324,079 614,599 938,678 Number of Races Live Races Simulcast Races Total Number of Races Pari-Mutuel Handle Average Handle per Race Day FY 2006 208 232 440 Total Live Performances Attendance On-Track Off-Track Total Attendance FY 2005 $364,636 $364,857 $402,987 $372,843 $370,672 Breakdown by location On-Track Handle Off-Track Handle $57,798,008 $102,641,830 $55,917,152 $105,714,653 $58,639,790 $121,092,552 $50,914,112 $112,018,399 $46,415,601 $116,680,191 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $29,381,769 $131,058,069 $160,439,838 $29,905,601 $131,726,204 $161,631,805 $32,503,981 $147,228,362 $179,732,342 $27,254,506 $135,678,005 $162,932,511 $27,094,443 $136,001,349 $163,095,792 $124,211,953 $125,373,998 $138,105,510 $124,571,918 $125,299,914 $480,282 $483,901 $527,860 $431,437 $429,592 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement-Non Taxable Charity Day Hardship Tax Credit Breakage Total Track Revenues $31,866,767 79,377 0 11,869 16,114 828,287 $32,802,413 $32,537,928 88,296 0 10,949 14,932 796,754 $33,448,859 $36,050,363 89,991 0 15,413 16,825 889,107 $37,061,698 $32,688,941 100,917 0 12,743 0 768,659 $33,571,259 $32,744,518 100,037 0 12,268 0 759,954 $33,616,777 Purses $13,954,044 $14,130,954 $15,515,306 $14,260,653 $15,828,636 DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Off-Track Live Simulcast On-Track vs. Off-Track Handle $160 $120 $140 $100 $120 Million Million $140 $80 $60 Source of Handle $100 $80 $60 $40 $40 $20 $20 $ $ FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2004 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 9 FY 2005 FY 2006 FY 2007 FY 2008 RILLITO PARK 4502 North First Avenue Tucson, Arizona 85728 Pima County Fair Horse Racing Commission RACING STATISTICS FY 2004 Race Days/Performances Live Race Days Dark Day-Simulcast Only Total Race Days FY 2005 FY 2006 FY 2008 Racing Dates: None (see county fairs) FY 2007 FY 2008 9 0 9 9 0 9 9 0 9 0 0 0 0 0 0 9 9 9 0 0 84 0 84 86 0 86 83 0 83 0 0 0 0 0 0 24,569 0 24,569 36,238 0 36,238 40,705 0 40,705 0 0 0 0 0 0 $89,521 $82,955 $93,470 $0 $0 Breakdown by location On-Track Handle Off-Track Handle $805,693 $0 $746,592 $0 $841,230 $0 $0 $0 $0 $0 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $805,693 0 $805,693 $746,592 0 $746,592 $841,230 0 $841,230 $0 0 $0 $0 0 $0 $621,883 $575,682 $643,248 $0 $0 Total Live Performances Number of Races Live Races Simulcast Races Total Number of Races Attendance On-Track Off-Track Total Attendance Pari-Mutuel Handle Average Handle per Race Day DISTRIBUTION OF REVENUES Returned to Wagering Public $0 $0 $0 $0 $0 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement-Non Taxable Charity Day Hardship Tax Credit Breakage Total Track Revenues $161,251 0 0 0 16,114 6,445 $183,810 $150,150 0 0 0 14,932 5,828 $170,910 $175,287 0 0 0 16,825 5,871 $197,982 $0 0 0 0 0 0 $0 $0 0 0 0 0 0 $0 Purses $165,283 $205,624 $189,054 $0 $0 State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Off-Track On-Track vs. Off-Track Handle Source of Handle Live Simulcast $1 $4 Million Million $3 $2 $1 $ $ FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2004 FY 2005 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 10 FY 2006 FY 2007 FY 2008 TURF PARADISE 1501 West Bell Road Phoenix, Arizona 85023 TP Racing, L.L.L.P. RACING STATISTICS FY 2004 Race Days/Performances (including 3 charity days) Live Race Days Dark Day-Simulcast Only Total Race Days FY 2008 Racing Dates: July 1, 2007 - June 30, 2008 FY 2005 FY 2006 FY 2007 FY 2008 154 194 348 144 202 346 151 197 348 133 211 344 133 212 345 154 144 151 133 133 1,388 40,325 41,713 1,356 42,852 44,208 1,375 43,371 44,746 1,205 44,605 45,810 1,211 46,485 47,696 324,061 408,908 732,969 301,100 407,370 708,470 331,511 473,525 805,036 282,764 420,788 703,552 281,137 441,130 722,267 $382,892 $378,807 $419,562 $373,056 $371,605 $55,502,312 $77,744,086 $53,625,809 $77,441,273 $56,037,345 $89,970,068 $48,856,296 $79,475,014 $44,483,207 $83,720,553 $24,607,228 108,639,170 $133,246,398 $24,744,198 106,322,884 $131,067,082 $27,163,223 118,844,190 $146,007,413 $22,208,647 106,122,663 $128,331,310 $22,092,609 106,111,151 $128,203,760 $103,130,018 $101,896,223 $112,372,468 $98,117,698 $98,508,381 $480,282 $483,901 $527,860 $431,437 $429,592 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement-Non Taxable Charity Day Hardship Tax Credit Breakage Total Track Revenues $26,422,880 0 0 11,869 0 692,750 $27,127,499 $26,370,398 0 0 10,949 0 645,789 $27,027,136 $29,267,373 0 0 15,413 0 721,384 $30,004,169 $25,747,068 0 0 12,743 0 600,244 $26,360,055 $25,770,861 0 0 12,268 0 605,819 $26,388,947 Purses $11,834,760 $11,690,443 $12,841,141 $11,532,280 $13,008,498 Total Live Performances Number of Races Live Races Simulcast Races Total Number of Races Attendance On-Track Off-Track Total Attendance Pari-Mutuel Handle Average Handle per Race Day Breakdown by location On-Track Handle Off-Track Handle Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Off-Track Live On-Track vs. Off-Track Handle Source of Handle Simulcast $140 $100 $90 $120 $100 $70 $60 Million Million $80 $50 $40 $30 $80 $60 $40 $20 $20 $10 $ $ FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2004 FY 2005 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 11 FY 2006 FY 2007 FY 2008 YAVAPAI DOWNS 10501 Hwy. 89A Prescott Valley, Arizona 86314 RACING STATISTICS Yavapai County Fair Association FY 2004 Race Days/Performances Live Race Days Dark Day-Simulcast Only Total Race Days FY 2005 FY 2008 Racing Dates: July 6, 2007 - August 31, 2007 May 24, 2008 - June 30, 2008 FY 2006 FY 2007 FY 2008 45 38 83 48 40 88 47 42 89 52 41 93 55 40 95 45 48 47 52 55 394 3,853 4,247 430 3,883 4,313 417 4,143 4,560 469 4,276 4,745 495 4,203 4,698 67,193 134,991 202,184 43,127 173,929 217,056 60,438 210,296 270,734 45,728 171,282 217,010 42,942 173,469 216,411 $317,925 $338,842 $369,480 $372,056 $367,285 Breakdown by location On-Track Handle Off-Track Handle $1,490,003 $24,897,744 1,544,751 28,273,380 1,761,215 31,122,484 2,057,817 32,543,385 1,932,394 32,959,639 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $3,968,848 22,418,899 $26,387,747 4,414,811 25,403,320 $29,818,131 4,499,528 28,384,172 $32,883,699 5,045,859 29,555,342 $34,601,201 5,001,835 29,890,198 $34,892,032 $20,460,052 $22,902,092 $25,089,795 $26,454,220 $26,791,533 Total Live Performances Number of Races Live Races Simulcast Races Total Number of Races Attendance On-Track Off-Track Total Attendance Pari-Mutuel Handle Average Handle per Race Day DISTRIBUTION OF REVENUES Returned to Wagering Public $0 $0 $0 $0 $0 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement-Non Taxable Charity Day Hardship Tax Credit Breakage Total Track Revenues $5,282,636 79,377 0 0 0 129,092 $5,491,104 $6,017,380 88,296 0 0 0 145,136 $6,250,812 $6,607,704 89,991 0 0 0 161,852 $6,859,546 $6,941,873 100,917 0 0 0 168,414 $7,211,204 $6,973,658 100,037 0 0 0 154,136 $7,227,830 Purses $1,954,001 $2,234,887 $2,485,110 $2,728,373 $2,820,139 State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Off-Track Live Simulcast On-Track vs. Off-Track Handle $35 $35 $30 $30 $25 Million Million Source of Handle $20 $15 $25 $20 $15 $10 $10 $5 $5 $ $ FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2004 FY 2005 * Prescott Downs through 2001 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 12 FY 2006 FY 2007 FY 2008 County Fair Racing The Department of Racing is responsible for regulating and supervising all county fair horse racing meetings, providing staff to operate race meetings, conducting investigations, issuing licenses, conducting equine and human drug testing, overseeing wagering, conducting hearings on investigation referrals, and collecting revenues for the State. The Department of Racing recognizes that county fair racing is an important component of the Arizona racing industry. The racing fans and general public who attend have an enjoyable time. The horse owners, grooms, jockeys, and others are able to experience a competitive environment. Local communities also benefit from the economic and entertainment value of the races. An economic impact report submitted to the Commission concluded that 36,700 fans attended county fair race events in FY 2002. In addition, this segment of the racing industry had a total economic impact of $22.7 million. In FY 2008, a total of $1.57 million was available for county fair racing activities. County fair racing is supported by the following two fund sources: County Fair Racing. This appropriated fund, authorized for the administration of county fair racing, is generated by 9% of all pari-mutuel receipts, license fees, and State unclaimed property up to $450,000 annually. In FY 2008, this fund received $450,000, but, after budgetary adjustments legislated to balance the State’s budget, $446,900 was appropriated for operating and regulatory expenses. In FY 2008, the Department spent $440,200 for this program. County Fair Racing Betterment. This non-appropriated fund provides purse subsidy and betterment grants to every eligible county fair association for conducting county fair racing meetings. The fund receives 22% of all pari-mutuel receipts, license fees, and State unclaimed property up to $1.2 million annually. In FY 2008, this fund received $1.2 million, and $1.12 million was distributed. Ten counties conducting a meet in FY 2008 received $55,000 each to subsidize purses. Five counties conducted their meets at commercial tracks and did not receive funding for this purpose. Ten counties received either $45,000, $59,200, or $60,000 each in Betterment Grants last year. These funds were used for personnel, maintenance, security, emergency medical services, capital improvements to racing facilities, and other operating expenses. The five counties that conducted their racing at commercial sites were not entitled to the funds. ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 13 County Fair Racing Betterment Payments to Counties County Apache County Cochise County Coconino County Gila County Graham County Greenlee County La Paz County Maricopa County Mohave County Navajo County Pima County Pinal County Santa Cruz County Yavapai County Yuma County Purses $55,000 55,000 55,000 55,000 55,000 55,000 0 0 55,000 0 55,000 0 55,000 55,000 0 Betterment $60,000 60,000 59,200 60,000 60,000 60,000 0 0 60,000 0 45,000 0 60,000 45,000 0 Total $115,000 115,000 114,200 115,000 115,000 115,000 0 0 115,000 0 100,000 0 115,000 100,000 0 $550,000 $569,200 $1,119,200 Investigations The Department investigates possible violations of racing laws and rules and imposes administrative sanctions on those determined to have committed violations. Investigation numbers listed below reflect the total number of investigations conducted for every incident and background investigation, which includes processing of fingerprints and any resulting false applications. Performance Measures FY 2006 FY 2007 FY 2008 76 296 372 22 333 355 21 586 607 Number of incident investigations Number of background investigations Total number of investigations conducted Licensing The Department issues licenses to participate in racing to those who are qualified and eligible. A background investigation is conducted for each license applicant who submits fingerprints as required by Department policy. Licenses are denied for those who are undesirable or statutorily prohibited from participating. Performance Measures FY 2006 FY 2007 FY 2008 325 0 * 100% 660 2 * 100% 892 1 35 100% Number of licenses issued Number of licenses denied Number of licenses revoked Percentage of license denials upheld on appeal * Measure not tracked for County Fairs in prior years; only for horses and greyhounds. ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 14 County Fair Racing Stewards The Board of Stewards is present on the permittee grounds on each day entries are being taken or racing is being conducted, representing the Department in all matters pertaining to the enforcement and interpretation of the rules adopted by the Department. The Stewards may impose civil penalties up to $1,000, suspend licenses up to 60 days, and refer matters to the Director with recommendations of further action, including license revocation. All races are observed and supervised to ensure that all participants comply with the rules of racing. Performance Measures FY 2006 FY 2007 FY 2008 42 99% 33 96% 28 96% 6 6 0 6 6 0 16 1 1 4 3 2 4 2 0 0 16 2 3 4 2 2 4 1 4 5 3 Number of Stewards’ rulings issued Percentage of Stewards’ rulings upheld on appeal to the Director Rulings by Track Apache County Fair, St. Johns Cochise County Fair, Douglas Coconino County Fair, Flagstaff Gila County Fair, Globe Graham County Fair, Safford Greenlee County Fair, Duncan Mohave County Fair, Kingman Pima County Fair, Rillito Park in Tucson Santa Cruz County Fair, Sonoita Director The Director of the Department is required by statute to review all rulings issued by the Stewards. Individual licensees may also appeal a Stewards' ruling to the Director, and if not satisfied with the Director's order, to the Racing Commission. The Office of Administrative Hearings also hears matters referred by the Director. Performance Measures FY 2006 FY 2007 FY 2008 19 0 0 0 19 26 n/a 38 0 1 0 39 38 100% 69 1 0 2 72 64 100% * * * * * * * * * 0 0 17 2 3 2 6 0 8 6 8 17 3 2 3 4 13 8 Number of Director’s hearings Number of Administrative Law Judge hearings Number of Racing Commission hearings Number of Cases withdrawn/dismissed Total number of hearings Total number of orders Percentage of orders upheld on appeal to the Commission Orders by Track Apache County Fair, St. Johns Cochise County Fair, Douglas Coconino County Fair, Flagstaff Gila County Fair, Globe Graham County Fair, Safford Greenlee County Fair, Duncan Mohave County Fair, Kingman Pima County Fair, Rillito Park in Tucson Santa Cruz County Fair, Sonoita * Measure not tracked by County Fair prior to FY 2007. ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 15 COUNTY FAIR TRACKS County Fair Racing at Fairs and Commercial Tracks RACING STATISTICS FY 2004 Race Days/Performances Live Race Days Dark Day-Simulcast Only Total Race Days Total Live Performances Number of Races Live Races Simulcast Races Total Number of Races Attendance On-Track Off-Track Total Attendance Pari-Mutuel Handle Average Handle per Race Day FY 2005 FY 2006 FY 2007 FY 2008 61 2 63 62 2 64 59 3 62 64 2 66 64 2 66 61 62 59 64 64 513 2,848 3,361 534 3,012 3,546 519 2,528 3,047 572 3,549 4,121 568 3,526 4,094 127,759 58,814 186,573 127,942 70,708 198,650 128,477 73,621 202,098 153,308 68,253 221,561 145,641 69,231 214,872 $295,212 $328,819 $334,785 $336,448 $331,999 Breakdown by location On-Track Handle Off-Track Handle $7,668,089 $10,930,245 $8,428,760 $12,615,638 $8,130,138 $12,626,535 $9,454,053 $12,751,547 $8,677,661 $13,234,294 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $5,760,676 12,837,658 $18,598,334 $6,265,006 14,779,392 $21,044,398 $6,214,883 14,541,789 $20,756,673 $6,959,997 15,245,603 $22,205,600 $6,680,411 15,231,544 $21,911,955 $14,548,440 $16,572,761 $15,868,071 $16,838,949 $16,548,016 DISTRIBUTION OF REVENUES Returned to Wagering Public $0 $0 $0 $0 $0 Track Mutuel Revenues Track Commission Breakage Total Track Revenues $3,655,009 99,960 $3,754,969 $4,173,837 112,998 $4,286,835 $4,103,839 111,160 $4,214,999 $4,390,313 116,542 $4,506,854 $4,357,033 109,312 $4,466,346 Purses $2,062,074 $2,185,863 $2,206,532 $2,612,626 $2,923,095 State Pari-Mutuel Revenues Racetrack Trends at a Glance On-Track Off-Track Source of Handle $18 $16 $14 $12 $10 $8 $6 $4 $2 $ $14 $12 Million $10 Million Live Simulcast On-Track vs. Off-Track Handle $8 $6 $4 $2 $ FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2004 FY 2005 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 16 FY 2006 FY 2007 FY 2008 County Fair Racing Schedule and Statistics FY 2008 Race Days ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 17 Fairs at Non-Commercial Tracks Coconino County Fair at Flagstaff June 30, July 1, 2, 3, 4, 5, 2007 Apache County Fair at St. Johns September 15, 16, 22, 23, 2007 Gila County Fair at Globe September 29, 30, October 6, 7, 2007 Pima County Fair at Tucson February 2, 3, 9, 10, 16, 17, 23, 24, 2008 Greenlee County Fair at Duncan March 8, 9, 15, 16, 2008 Graham County Fair at Safford March 29, 30, April 5, 6, 2008 Cochise County Fair at Douglas April 12, 13, 19, 20, 2008 Santa Cruz County Fair at Sonoita April 26, 27, May 3, 4, 2008 Mohave County Fair at Kingman May 10, 11, 17, 18, 2008 Subtotal - Fairs at Non-Commercial Tracks Live Races Simulcast Races Total Handle 6 36 284 2,593,661 4 32 - 46,604 4 32 - 4 74 4 Simulcast Handle 2,055,060 Attendance Returned to Public Track Commission Breakage to Track Purses 19,262 2,023,390 514,624 13,622 191,882 - 1,554 36,261 8,911 501 69,272 75,642 - 1,652 58,814 14,649 667 78,177 - 758,166 - 44,203 579,379 157,527 6,096 263,409 37 - 114,724 - 2,584 89,169 22,381 880 93,269 4 36 - 150,425 - 9,093 116,908 29,169 1,340 70,799 4 37 - 111,352 - 4,550 86,759 21,477 890 198,529 4 35 - 177,914 - 10,500 138,640 34,300 1,416 104,606 4 31 - 111,434 - 2,600 87,071 21,081 1,053 85,851 38 350 284 4 38 4 $4,139,922 $2,055,060 95,998 $3,216,390 $824,117 $26,465 $1,155,794 161 1,660,666 1,242,326 11,976 1,238,735 329,661 7,174 140,268 36 532 2,853,097 1,987,882 19,251 2,129,541 573,622 13,674 309,948 4 36 568 2,974,764 2,219,714 18,205 2,281,077 590,145 11,983 293,085 4 36 596 3,448,140 2,525,599 24,280 2,613,172 684,543 15,710 355,566 4 36 678 3,508,291 2,640,064 21,186 2,633,932 699,170 18,426 347,995 3,327,075 2,560,900 23,976 2,435,171 655,775 15,881 320,439 Fairs at Commercial Tracks Yavapai County Fair at Prescott Valley (Yavapai Downs) September 1, 2, 3, 4, 2007 Maricopa County Fair at Phoenix (Turf Paradise) January 5, 6, 26, 27, 2008 La Paz County Fair at Phoenix (Turf Paradise) January 12, 13, 19, 20, 2008 Pinal County Fair at Phoenix (Turf Paradise) February 16, 17, 23, 24, 2008 Navajo County Fair at Phoenix (Turf Paradise) March 8, 9, 15, 16, 2008 Yuma County Fair at Phoenix (Turf Paradise) March 29, 30, April 5, 6, 2008 Subtotal - Fairs at Commercial Tracks 4 36 707 24 218 3,242 $17,772,033 $13,176,484 118,874 $13,331,627 $3,532,916 $82,848 $1,767,301 Total - All County Fair Racing 62 568 3,526 $21,911,955 $15,231,544 214,872 $16,548,016 $4,357,033 $109,312 $2,923,095 Commercial Greyhound Racing The Department of Racing is responsible for regulating and supervising all commercial greyhound racing meetings, conducting investigations, issuing licenses, conducting greyhound drug testing, overseeing wagering, hearing appeals of decisions, conducting hearings on investigation referrals and race incidents, collecting revenues for the State, and distributing awards to program recipients. Investigations The Department investigates possible violations of racing laws and rules and imposes administrative sanctions on those determined to have committed violations. Investigation numbers listed below reflect the total number of investigations conducted for every incident, inspection, and background investigation, which includes processing of fingerprints and any resulting false applications. All races are observed and supervised to ensure that all participants comply with the rules of racing. Performance Measures FY 2006 FY 2007 FY 2008 93 365 458 201 374 575 247 963 1,210 Number of incident investigations Number of background investigations Total number of investigations conducted Licensing The Department issues licenses to participate in racing to those who are qualified and eligible. A background investigation is conducted for each license applicant who submits fingerprints as required by Department policy. Licenses are denied for those who are undesirable or statutorily prohibited from participating. Performance Measures Number of licenses issued Number of licenses denied Number of licenses revoked Percentage of license denials upheld on appeal FY 2006 FY 2007 FY 2008 566 2 44 100% 522 1 36 100% 1,264 3 67 100% Stewards The Board of Stewards is present on the permittee grounds on each day entries are being taken or racing is being conducted, representing the Department in all matters pertaining to the enforcement and interpretation of the rules adopted by the Department. The Stewards may impose civil penalties up to $1,000, suspend licenses up to 60 days, and refer matters to the Director with recommendations of further action, including license revocation. All races are observed and supervised to ensure that all participants comply with the rules of racing. Performance Measures FY 2006 FY 2007 FY 2008 194 99% 153 96% 146 100% 91 103 91 62 36 110 Number of Stewards’ rulings issued Percentage of Stewards’ rulings upheld on appeal to the Director Rulings by Track Phoenix Greyhound Park Tucson Greyhound Park ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 18 Commercial Greyhound Racing Director The Director of the Department is required by statute to review all rulings issued by the Stewards. Individual licensees may also appeal a Stewards' ruling to the Director, and if not satisfied with the Director's ruling, to the Racing Commission. The Office of Administrative Hearings also hears matters referred by the Director. Performance Measures FY 2006 FY 2007 FY 2008 60 0 0 0 60 77 n/a 34 0 0 0 34 37 n/a 114 0 1 3 115 110 100% Phoenix Greyhound Park 45 17 63 Tucson Greyhound Park 32 20 47 Number of Director’s hearings Number of Administrative Law Judge hearings Number of Racing Commission hearings Number of Cases withdrawn/dismissed Total number of hearings Total number of orders Percentage of orders upheld on appeal to the Commission Orders by Track Inspections The Department inspects greyhound farms, kennels, vehicles that haul greyhounds and other operations after the facilities have satisfied requirements. Performance Measures FY 2006 FY 2007 FY 2008 8 58 4% 8 87 1.2% 58 35 1% 76 N/A 104 45 81 36 Number of facility licenses issued Number of inspections conducted at facilities Percentage of inspections resulting in violations and disciplinary action Number of whelping inspections Number of vehicle inspections Breeders’ Awards The Department encourages and promotes greyhound breeding in Arizona through the administration of and distribution to recipients of funds available through the Breeders’ Awards Programs. Performance Measures Amount of awards Percentage of breeders winning awards Number of greyhounds earning awards Number of registered greyhounds FY 2006 FY 2007 FY 2008 $298,026 8% 664 9,439 $455,259 49% 639 9,909 $311,191 93% 604 10,313 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 19 Commercial Greyhound Racing Greyhound Adoption The Department provides grants to non-profit organizations to promote the adoption of retired racing greyhounds as domestic pets. This fund receives 100% of all fees collected from licensing greyhound racing kennels, breeding farms and other operations where greyhounds are raised for racing purposes. In FY 2008, the fund received $1,250. Performance Measures Number of grants awarded Amount of grants awarded FY 2006 FY 2007 FY 2008 2 $1,534 0 $0 1 $1,250 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 20 COMMERCIAL GREYHOUND TRACKS Apache Greyhound, Phoenix Greyhound, Tucson Greyhound FY 2004 RACING STATISTICS Race Days/Performances (including 9 charity days) Live Race Days Dark Day-Simulcast only Total Race Days FY 2005 FY 2006 FY 2007 FY 2008 719 371 1,090 634 453 1,087 667 420 1,087 660 427 1,087 600 490 1,090 719 634 667 660 600 Number of Races Live Races Simulcast Races Total Number of Races 10,492 218,222 228,714 9,372 213,839 223,211 10,119 212,233 222,352 9,545 232,167 241,712 7,931 233,201 241,132 Attendance On-Track Off-Track Total Attendance 309,405 245,444 554,849 260,175 252,995 513,170 258,294 265,181 523,475 242,079 226,755 468,834 223,833 208,196 432,029 Pari-Mutuel Handle Average Handle per Race Day $78,036 $75,332 $78,132 $74,933 $62,141 Breakdown by location On-Track Handle Off-Track Handle $30,557,129 $54,501,568 $24,420,309 $57,465,556 $24,174,364 $60,755,397 $24,117,884 $57,334,119 $22,174,756 $45,558,430 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $43,430,639 $41,628,058 $85,058,697 $45,080,399 $36,805,465 $81,885,864 $48,967,570 $35,962,191 $84,929,761 $43,566,317 $37,885,687 $81,452,003 $32,868,549 $34,864,637 $67,733,186 $65,060,502 $62,397,624 $65,087,000 $62,355,345 $52,073,727 $84,909 $0 $0 $0 $0 $17,155,485 0 0 0 58,026 2,245,751 0 246,844 $19,706,106 $16,418,485 0 0 0 76,310 2,403,112 0 229,595 $19,127,502 $16,898,092 0 0 0 56,052 2,637,164 0 221,691 $19,812,998 $16,541,416 0 0 0 43,121 2,353,026 0 200,269 $19,137,832 $13,972,719 0 0 0 39,147 1,768,623 0 157,288 $15,937,777 $4,481,327 $4,392,179 $4,592,493 $4,259,927 $3,494,876 Total Live Performances (Matinee & Evening) DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Capital Improvement AGP Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit AGP-Hardship Tax (Transferred to PGP) Breakage Total Track Revenues Purses Racetrack Trends at a Glance On-Track vs. Off-Track Handle On-Track Off-Track Live Simulcast $70 $60 $60 $50 $40 Million Million $50 Source of Handle $40 $30 $30 $20 $20 $10 $10 $ $ FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2004 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 21 FY 2005 FY 2006 FY 2007 FY 2008 APACHE GREYHOUND PARK 2551 West Apache Trail Apache Junction, Arizona 85220 American Greyhound Racing, Inc. RACING STATISTICS FY 2004 Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days FY 2008 Racing Dates: July 1, 2007 - June 30, 2008 FY 2005 FY 2006 FY 2007 FY 2008 56 308 364 0 362 362 0 362 362 0 362 362 0 363 363 56 0 0 0 0 834 60,250 61,084 0 60,270 60,270 0 64,529 64,529 0 72,968 72,968 0 73,490 73,490 Attendance On-Track Off-Track Total Attendance 126,750 0 126,750 81,353 0 81,353 82,160 0 82,160 79,200 0 79,200 79,013 0 79,013 Pari-Mutuel Handle Average Handle per Race Day Total Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races $14,511 $9,629 $11,329 $12,191 $13,957 Breakdown by location On-Track Handle Off-Track Handle $5,281,988 $0 $3,485,747 $0 $4,101,136 $0 $4,413,071 $0 $5,066,332 $0 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $1,544,305 3,737,683 $5,281,988 $0 $3,485,747 $3,485,747 $0 $4,101,136 $4,101,136 $0 $4,413,071 $4,413,071 $0 $5,066,332 $5,066,332 $4,103,541 $2,670,590 $3,223,463 $3,441,643 $3,886,753 $0 $0 $0 $0 $0 $1,103,296 0 0 0 4,418 80,519 0 18,363 $1,206,597 $813,942 0 0 0 0 0 0 8,938 $822,880 $942,979 0 0 0 0 0 0 8,810 $951,789 $1,032,928 0 0 0 0 0 0 9,110 $1,042,037 $1,192,917 0 0 0 0 0 0 8,235 $1,201,152 $255,152 $160,366 $187,587 $201,092 $228,396 DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Capital Improvement AGP Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit AGP-Hardship Tax (Transferred to PGP) Breakage Total Track Revenues Purses Racetrack Trends at a Glance On-Track Off-Track Live Simulcast On-Track vs. Off-Track Handle $10 Source of Handle $6 $9 $5 $8 Million Million $7 $6 $5 $4 $4 $3 $2 $3 $2 $1 $1 $ $ FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2004 FY 2005 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 22 FY 2006 FY 2007 FY 2008 PHOENIX GREYHOUND PARK 3801 East Washington Street Phoenix, Arizona 85036 American Greyhound Racing, Inc. RACING STATISTICS FY 2004 FY 2005 FY 2008 Racing Dates: July 1, 2007 - June 30, 2008 FY 2006 FY 2007 FY 2008 Race Days/Performances (including 9 charity day) Live Race Days Dark Day-Simulcast only Total Race Days 352 11 363 352 10 362 362 0 362 362 0 362 348 15 363 Total Live Performances (Matinee & Evening) 352 352 362 362 348 5,169 74,579 79,748 5,387 67,266 72,653 5,770 63,841 69,611 5,733 70,123 75,856 5,019 70,116 75,135 133,309 165,126 298,435 127,079 165,341 292,420 123,617 171,657 295,274 122,821 150,734 273,555 106,100 127,862 233,962 $160,503 $159,323 $166,511 $153,588 $127,816 Breakdown by location On-Track Handle Off-Track Handle $16,906,712 $41,355,918 $15,080,705 $42,594,136 $15,043,286 $45,233,757 $14,071,955 $41,526,811 $12,822,684 $33,574,550 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $35,263,900 22,998,730 $58,262,630 $37,464,322 20,210,518 $57,674,840 $40,908,294 19,368,749 $60,277,043 $37,733,613 17,865,152 $55,598,765 $28,922,407 17,474,827 $46,397,234 $44,174,254 $43,953,881 $45,922,489 $42,367,781 $35,372,281 $84,909 $0 $0 $0 $0 $11,362,412 0 0 0 53,609 1,800,998 0 175,420 $13,392,439 $11,130,623 0 0 0 76,310 1,984,228 0 170,544 $13,361,706 $11,577,368 0 0 0 56,052 2,193,905 0 163,624 $13,990,948 $10,757,869 0 0 0 43,121 2,032,228 0 143,872 $12,977,090 $9,151,719 0 0 0 39,147 1,551,585 0 115,733 $10,858,184 $3,188,597 $3,189,057 $3,352,976 $3,095,274 $2,545,527 Number of Races Live Races Simulcast Races Total Number of Races Attendance On-Track Off-Track Total Attendance Pari-Mutuel Handle Average Handle per Race Day DISTRIBUTION OF REVENUES Returned to Wagering Public State Pari-Mutuel Revenues Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Capital Improvement AGP Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit AGP-Hardship Tax (Transferred to PGP) Breakage Total Track Revenues Purses Racetrack Trends at a Glance On-Track Source of Handle $45 $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $ $40 $35 $30 Million Million Live Simulcast On-Track vs. Off-Track Handle Off-Track $25 $20 $15 $10 $5 $ FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2004 FY 2005 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 23 FY 2006 FY 2007 FY 2008 TUCSON GREYHOUND PARK 2601 South Third Avenue Tucson, Arizona 85713 Tucson Greyhound Park, Inc. RACING STATISTICS FY 2004 Race Days/Performances Live Race Days Dark Day-Simulcast only Total Race Days FY 2005 FY 2008 Racing Dates: July 1, 2007 - June 30, 2008 FY 2006 FY 2007 FY 2008 311 52 363 282 81 363 305 58 363 298 65 363 252 112 364 311 282 305 298 252 4,489 83,393 87,882 3,985 86,303 90,288 4,349 83,863 88,212 3,812 89,076 92,888 2,912 89,595 92,507 Attendance On-Track Off-Track Total Attendance 49,346 80,318 129,664 51,743 87,654 139,397 52,517 93,524 146,041 40,058 76,021 116,079 38,720 80,334 119,054 Pari-Mutuel Handle Average Handle per Race Day $59,267 $57,094 $56,616 $59,064 $44,697 Breakdown by location On-Track Handle Off-Track Handle $8,368,429 $13,145,650 $5,853,857 $14,871,420 $5,029,942 $15,521,640 $5,632,858 $15,807,308 $4,285,739 $11,983,880 Breakdown by source Live Races Simulcast Races Total Pari-Mutuel Handle $6,622,434 14,891,645 $21,514,079 $7,616,077 13,109,200 $20,725,277 $8,059,276 12,492,307 $20,551,582 $5,832,704 15,607,463 $21,440,167 $3,946,142 12,323,477 $16,269,619 $16,782,707 $15,773,153 $15,941,049 $16,545,921 $12,814,693 $0 $0 $0 $0 $0 Track Mutuel Revenues Track Commission Capital Improvement Rebate Capital Improvement Non-Taxable Charity Days-Revenues Withheld Hardship Tax Credit Breakage Total Track Revenues $4,689,776 0 0 0 364,234 53,061 $5,107,071 $4,473,920 0 0 0 418,883 50,114 $4,942,917 $4,377,744 0 0 0 443,259 49,257 $4,870,261 $4,750,619 0 0 0 320,798 47,288 $5,118,705 $3,628,084 0 0 0 217,037 33,320 $3,878,441 Purses $1,037,578 $1,042,756 $1,051,930 $963,561 $720,953 Total Live Performances (Matinee & Evening) Number of Races Live Races Simulcast Races Total Number of Races Returned to Wagering Public State Pari-Mutuel Revenues Racetrack Trends at a Glance Live On-Track vs. Off-Track Handle $18 $18 $16 $16 $14 $14 $12 $12 $10 $8 Source of Handle Simulcast Million Million On-Track Off-Track $10 $8 $6 $6 $4 $4 $2 $2 $ $ FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2004 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 24 FY 2005 FY 2006 FY 2007 FY 2008 Teletracking The Department of Racing has the authority to approve applications for teletracking (off-track betting) permits, license teletracking sites and their personnel, and monitor compliance for both operational and technical requirements. Coconino County Racing (Fort Tuthill Downs), Turf Paradise, Yavapai County Fair Association (Yavapai Downs), Phoenix Greyhound Park, and Tucson Greyhound Park each held teletracking permits approved by the Arizona Racing Commission to operate off-track wagering sites in FY 2008. A total of 77 off-track-betting sites were authorized to support both greyhound and horse racing in Arizona. The total handle generated by commercial and county fair racing for teletracking was $172.8 million. This included $127.3 million for horse racing and $45.5 million for greyhound racing. The State of Arizona received $218,513 in revenue from the teletracking handle, all of which was generated from the Turf Paradise handle at off-track sites. The handle at teletracking facilities declined 1.8% during FY 2008 from the prior year. The Table below summarizes the teletrack handle generated by commercial and county fair meets. Teletrack Handle FY 2007 FY 2008 $79,467,200 83,720,553 Phoenix Greyhound Park 41,525,858 33,560,088 Yavapai Downs 32,543,425 30,863,474 Tucson Greyhound Park 15,793,792 11,973,181 Turf Paradise (Fair Meets) 8,866,302 9,526,571 Yavapai Downs (Fair Meets) 1,542,698 1,469,872 Fort Tuthill Downs (Fair Meet) 2,440,143 1,682,651 0 0 $182,179,418 $172,796,390 Track Turf Paradise Rillito Park* TOTAL * No teletracking since FY 2000. ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 25 TELETRACKING ACTIVITY - COMMERCIAL HORSE MEETS YAVAPAI DOWNS City AHWATUKEE APACHE JUNCTION APACHE JUNCTION BENSON BUCKEYE CASA GRANDE CAVE CREEK CHANDLER CHANDLER COTTONWOOD FLAGSTAFF GLENDALE GOODYEAR GREEN VALLEY KINGMAN LAKE HAVASU CITY MARANA NEW RIVER PARKER PAYSON PEORIA PEORIA PEORIA PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PRESCOTT PRESCOTT VALLEY PRESCOTT VALLEY QUARTZSITE ROCK SPRINGS SAFFORD SCOTTSDALE SEDONA SHOW LOW SIERRA VISTA SURPRISE SURPRISE TEMPE TEMPE TEMPE TEMPE TEMPE TEMPE TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON WICKENBERG YUMA Site BLEACHER'S APACHE GREYHOUND PARK ARIZONA JOE'S BIG BOY'S ARENA GRILL WADDEL'S CORRAL MCMASHER'S SPORTS BAR HAROLD'S RESTAURANT DIRTY DRUMMER STADIUM CLUB ZOOMER'S SPORTS BAR MUSEUM CLUB MAX'S SPORTS BAR ROMAN'S OASIS GREEN VALLEY LANES CERBAT HILLS GALLAGHER'S AGAIN OLD FATHER INN GAVILAN PEAK JULIO'S FAMOUS SAM'S GALLAGHER'S RAMADA INN MCDUFFY'S SPORTS BAR 1800'S SALOON AMERICAN LEGION #7 AMF CHRISTOWN LANES ARMADILLO GRILL BIG DADDY'S BRENNAN'S CHEERLEADER'S CROSSROADS DRAW 10 FINAL SCORE SPORTS GRILL GALLAGHER'S - CAREFREE GALLAGHER'S - 16TH STREET HAM'S RESTAURANT METRO SPORTS BAR NORTH STAR RESTAURANT PADRE MURPHY'S ROMAN'S COUNTY LINE TURF PARADISE MATT'S SALOON ANTELOPE LANES YAVAPAI DOWNS QUARTZSITE YACHT CLUB ROCK SPRINGS CAFE CHALO'S LA CASA REYNOSO UPPER DECK SPORTS GRILL LOS ABRIGADOS RESRT JDS BLACK BULL P.C.'S LOUNGE COYOTE ALLEY RUNNER'S SPORTS BAR BOSTON'S GRILLE HAIL MARY'S AT PRIEST HORSE & HOUND-OFF BROADWAY SIX SHOOTER'S SKIP & JAN'S STRAY CAT AIRPORT INN FAMOUS SAM'S-CENTRAL FAMOUS SAM'S-EAST GOLDEN PIN LANES JEFF'S PUB PUTNEY'S SPORTS BAR TOUCHDOWN'S TUCSON GREYHOUND PARK MECCA RESTAURANT RON'S PLACE Sub-Total County Fairs SONOITA Sub-Total TOTAL Handle SANTA CRUZ COUNTY FAIR Revenue TURF PARADISE Performances Handle Revenue 1,363,353 2,748,786 803,762 265,879 69,967 949,265 1,457,907 3,257,536 3,485,438 125,539 941,233 3,031,158 816,430 568,204 1,177,902 833,965 783,920 149,994 268,394 980,526 1,850,393 1,583,318 327,537 2,316,307 1,603,280 3,664,396 649,324 6,127,331 1,246,588 1,161,982 46,642 878,896 118,004 1,731,993 710,161 1,772,826 4,985,510 1,522,695 927,849 996,292 437,085 363,833 37,766 511,708 1,968,628 389,021 356,838 957,961 853,542 1,483,802 1,544,223 538,022 2,431,301 873,807 2,093,218 1,714,144 251,334 342,500 341,342 905,354 787,881 641,790 956,032 2,128,209 262,009 2,240,721 Performances 515,093 891,234 282,014 57,006 45,533 304,912 375,614 1,497,125 1,170,906 96,315 433,961 1,025,090 298,368 53,816 218,164 376,338 328,240 279,700 54,672 104,599 289,605 686,759 649,808 115,918 845,804 597,350 1,059,371 127,287 1,904,490 421,429 383,461 56,107 382,743 158,369 785,879 139,630 247,038 546,123 1,784,191 705,710 443,000 336,565 401,642 55,319 37,232 216,028 849,997 136,415 409,562 380,478 299,623 545,743 636,261 165,944 816,061 309,107 307,388 541,578 103,990 138,236 252,065 546,394 312,956 233,424 357,178 831,351 93,540 810,625 - 95 95 95 57 57 95 95 95 95 56 95 94 95 56 95 95 95 95 58 88 95 95 95 95 95 95 95 51 95 95 95 51 95 38 95 20 95 95 95 95 55 94 95 60 40 95 95 94 94 95 95 95 95 38 94 57 38 95 94 95 95 95 95 95 95 95 74 95 $3,268 8,019 1,757 442 162 2,296 3,111 7,315 8,144 343 2,317 8,731 2,303 1,738 2,593 1,845 1,682 340 570 2,307 4,988 4,524 843 5,693 3,924 10,074 1,977 13,875 3,215 2,878 36 1,629 137 3,939 1,721 4,902 13,429 3,987 2,162 3,075 1,430 800 36 1,218 5,498 1,105 1,031 2,245 2,298 4,803 3,632 1,486 5,916 2,028 5,194 5,023 908 906 717 2,140 1,530 1,496 1,516 5,548 584 3,134 241 239 241 201 70 237 239 240 240 85 236 239 239 239 240 217 209 92 191 239 240 238 241 241 240 240 214 239 240 241 61 240 44 239 241 241 240 239 239 238 227 187 30 234 240 238 237 239 240 241 241 208 240 156 241 240 215 217 217 217 217 217 217 217 189 239 $30,863,474 - 5,733 $83,712,553 $208,513 14,171 - - - 8,000 - 4 - - - 8,000 - 4 $30,863,474 - 5,733 $83,720,553 $208,513 14,175 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 26 TELETRACKING ACTIVITY - COUNTY FAIR MEETS FORT TUTHILL DOWNS YAVAPAI DOWNS (Coconino) (Yavapai) TURF PARADISE (La Paz, Maricopa, Navajo, Pinal, and Yuma) City AHWATUKEE APACHE JUNCTION APACHE JUNCTION BENSON BUCKEYE CASA GRANDE CAVE CREEK CHANDLER CHANDLER COTTONWOOD FLAGSTAFF GLENDALE GOODYEAR GREEN VALLEY KINGMAN LAKE HAVASU CITY MARANA NEW RIVER PARKER PAYSON PEORIA PEORIA PEORIA PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PRESCOTT PRESCOTT VALLEY PRESCOTT VALLEY QUARTZSITE ROCK SPRINGS SAFFORD SCOTTSDALE SEDONA SHOW LOW SIERRA VISTA SURPRISE SURPRISE TEMPE TEMPE TEMPE TEMPE TEMPE TEMPE TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON WICKENBERG YUMA TOTAL Site Handle BLEACHER'S APACHE GREYHOUND PARK ARIZONA JOE'S BIG BOY'S ARENA GRILL WADDEL'S CORRAL MCMASHER'S SPORTS BAR HAROLD'S RESTAURANT DIRTY DRUMMER STADIUM CLUB ZOOMER'S SPORTS BAR MUSEUM CLUB MAX'S SPORTS BAR ROMAN'S OASIS GREEN VALLEY LANES CERBAT HILLS GALLAGHER'S AGAIN OLD FATHER INN GAVILAN PEAK JULIO'S FAMOUS SAM'S GALLAGHER'S RAMADA INN MCDUFFY'S SPORTS BAR 1800'S SALOON AMERICAN LEGION #7 AMF CHRISTOWN LANES ARMADILLO GRILL BIG DADDY'S BRENNAN'S CHEERLEADER'S CROSSROADS DRAW 10 FINAL SCORE SPORTS GRILL GALLAGHER'S - 16TH STREET HAM'S RESTAURANT METRO SPORTS BAR NORTH STAR RESTAURANT PADRE MURPHY'S ROMAN'S COUNTY LINE TURF PARADISE MATT'S SALOON ANTELOPE LANES YAVAPAI DOWNS QUARTZSITE YACHT CLUB ROCK SPRINGS CAFE CHALO'S LA CASA REYNOSO UPPER DECK SPORTS GRILL LOS ABRIGADOS RESRT JD'S BLACK BULL P.C.'S LOUNGE COYOTE ALLEY RUNNER'S SPORTS BAR BOSTON'S GRILLE HAIL MARY'S AT PRIEST HORSE & HOUND-OFF BROADWAY SIX SHOOTER'S SKIP & JAN'S STRAY CAT AIRPORT INN FAMOUS SAM'S-CENTRAL FAMOUS SAM'S-EAST GOLDEN PIN LANES JEFF'S PUB PUTNEY'S SPORTS BAR TOUCHDOWN'S TUCSON GREYHOUND PARK MECCA RESTAURANT RON'S PLACE 25,622 42,889 16,494 4,765 5,072 13,516 28,536 99,616 76,805 9,474 25,614 45,078 8,093 5,003 13,167 21,124 14,233 13,808 2,425 5,253 10,969 35,921 25,217 5,543 48,918 32,637 56,089 5,100 65,068 19,004 19,272 5,199 20,102 42,123 28,443 18,038 38,001 112,180 46,819 16,176 17,169 21,717 15,709 1,284 3,686 7,106 38,280 6,104 35,531 28,000 12,844 27,015 33,423 51,202 30,755 28,109 9,048 7,911 13,212 36,484 19,405 9,291 12,486 49,116 3,348 37,010 $1,682,651 Performances 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 3 5 5 5 5 5 5 5 5 4 5 5 5 4 5 5 3 5 5 5 5 3 5 5 5 1 3 4 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 3 5 313 Handle Performances 20,255 47,483 10,722 4,268 4,709 15,862 17,176 61,722 67,250 2,596 21,387 49,077 6,994 2,587 15,668 16,400 34,539 15,613 2,514 6,682 24,377 45,524 27,838 7,488 39,994 35,455 37,326 69,149 20,210 17,407 4,274 18,536 30,644 15,131 30,318 74,772 43,324 39,220 19,638 17,360 3,977 3,647 7,073 35,153 5,084 27,378 17,148 25,499 20,594 23,311 33,572 31,037 22,690 4,161 7,312 7,775 26,688 22,897 12,161 14,131 48,848 5,664 22,583 $1,469,872 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 27 4 4 4 4 4 4 4 4 4 2 3 4 4 4 4 4 4 4 2 4 4 4 4 4 4 4 4 4 4 4 2 4 4 4 4 4 4 4 4 4 2 2 4 4 4 4 4 4 4 4 4 4 4 3 4 4 4 4 4 4 4 2 3 237 Handle Performances 136,808 325,242 121,566 24,973 81,165 139,146 388,873 423,060 102,251 372,681 91,459 60,144 142,363 135,102 80,426 33,490 30,324 165,493 200,043 202,942 20,043 277,968 174,602 445,274 78,505 705,947 144,167 120,336 86,764 152,956 62,484 182,922 502,875 170,668 111,113 106,917 73,413 71,557 57,945 197,453 40,041 24,500 85,336 84,673 131,512 250,427 78,116 263,048 56,203 222,588 150,939 13,738 48,834 27,170 123,297 99,912 57,779 133,531 266,706 29,201 337,560 $9,526,571 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 18 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 10 20 20 20 20 20 20 20 20 20 20 20 20 1,208 TELETRACKING ACTIVITY - GREYHOUND MEETS PHOENIX GREYHOUND PARK City APACHE JUNCTION CASA GRANDE CHANDLER CHANDLER CHANDLER CHANDLER GLENDALE GOODYEAR GREEN VALLEY KINGMAN LITCHFIELD PARK MARANA PEORIA PEORIA PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX PRESCOTT SAFFORD SIERRA VISTA SURPRISE SURPRISE TEMPE TEMPE TEMPE TEMPE TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON TUCSON YUMA TOTAL Site Handle TUCSON GREYHOUND PARK Revenue Performances APACHE GREYHOUND PARK $ MCMASHER'S SPORTS BAR ALL STARZ GALLAGHER'S DIRTY DRUMMER STADIUM CLUB MAX'S SPORTS BAR CROSSROADS GREEN VALLEY LANES DAMBAR & STEAKHOUSE LIGHTHOUSE RESTAURANT OLD FATHER INN GALLAGHER'S RAMADA INN BIG DADDY'S BRENNAN'S CHEERLEADERS HAM'S RESTAURANT METRO SPORTS BAR NORTH STAR PADRE MURPHY'S PHOENIX GREYHOUND PARK PURPLE TURTLE PLAZA BOWL CHALO'S LA CASA REYNOSO PC'S LOUNGE COYOTE ALLEY RUNNER'S SPORTS BAR BOSTON'S BAR & GRILLE HORSE & HOUND-OFF BROADWAY SIX SHOOTER'S SKIP & JAN'S AIRPORT INN FAMOUS SAM'S - CENTRAL FAMOUS SAM'S - EAST GOLDEN PIN LANES JEFF'S PUB PUTNEY'S SPORTS BAR TOUCHDOWNS TUCSON GREYHOUND PARK RON'S PLACE 2,579,051 480,187 20,517 461,071 2,462,726 1,404,376 5,071,832 253,469 55,059 586,798 84,361 1,325,199 514,176 657,767 2,061,442 1,977,659 93,517 874,625 785,222 4,820,606 113,140 73,939 130,574 385,832 67,688 765,302 534,534 1,202,642 513,092 836,438 42,109 51,135 97,222 342,704 181,305 146,520 460,113 490,374 555,765 - 355 301 46 352 360 360 359 82 74 165 248 360 274 286 357 360 23 360 359 360 132 75 161 321 43 360 359 359 225 292 226 249 249 250 250 247 246 250 305 $ 33,560,088 - 10,040 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 28 Handle $ Revenue 128,008 28,611 8,455 322,106 100,634 1,067,298 18,155 20,203 94,877 113,715 47,798 25,775 8,478 392,880 54,825 29,952 432,169 656,265 944,152 3,534,935 1,460,310 1,172,249 1,311,331 - - $ 11,973,181 - Performances 190 168 8 189 83 364 67 117 153 190 183 104 8 190 189 89 359 364 364 364 364 363 363 4,833 Racing Regulation The Department of Racing’s regulatory responsibilities ensure that all participants and permittees involved in commercial horse racing, greyhound racing, and county fair horse racing operate and perform in compliance with applicable Arizona statutes, rules and regulations. This is accomplished through the investigation and licensing activities of the Department. Investigations The Department investigates all possible violations of racing laws and rules. Investigation numbers listed below reflect the total number of investigations conducted for every incident, inspection, and background investigation, which includes processing of fingerprints and any resulting false applications. A background investigation is conducted for each license applicant who submits fingerprints as required by Department policy. Performance Measures FY 2006 Number of incident investigations Number of background investigations Total number of investigations conducted 379 1,758 2,137 FY 2007 FY 2008 363 2,086 2,449 414 3,425 3,839 Types of Investigations Offenses False application Disorderly conduct/assault Human drug -testing Animal drug testing Kennel inspection Whelping inspection Vehicle inspection License denial/ineligible Information only Total Total Referred 218 9 54 29 35 81 36 3 6 471 218 9 13 29 2 1 0 3 0 275 No Violation 0 0 41 0 33 80 36 0 6 196 Licensing The Department processes and investigates all license applications in a timely manner while ensuring only those eligible receive licenses. Performance Measures Number of licenses issued Number of licenses denied Number of licenses revoked Percentage of license denials upheld on appeal FY 2006 FY 2007 FY 2008 3,120 11 233 99% 3,999 14 243 99% 5,848 11 210 83% ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 29 Racing Regulation Stewards The Board of Stewards is present on the permittee grounds on each day entries are being taken or racing is being conducted, representing the Department in all matters pertaining to the enforcement and interpretation of the rules adopted by the Department. The Stewards may impose civil penalties up to $1,000, license suspensions up to 60 days, and refer matters to the Director with recommendations of further action, including license revocation. FY 2006 FY 2007 FY 2008 647 99% 644 96% 521 100% Total rulings issued Percentage of Stewards’ rulings upheld on appeal to the Director Director The Director may conduct hearings of appeals or Stewards’ referrals or may assign a case that has been appealed or referred to the Arizona Office of Administrative Hearings. The Administrative Law Judge provides the Director findings of fact, conclusions of law and a proposed order. The Director may accept or modify any decision proposed by the Judge. The table below summarizes hearings and cases by the Director, the Office of Administrative Hearings, and the Racing Commission. Summary of Hearings and Orders Director’s hearings Administrative Law Judge hearings Racing Commission hearings Cases withdrawn/dismissed Total number of hearings Total number of orders* Percentage of orders upheld on appeal to the Commission FY 2006 FY 2007 FY 2008 976 10 7 2 995 1,170 86% 349 19 12 2 380 533 82% 432 117 5 24 580 422 75% * Includes orders for action taken not requiring a hearing, i.e. stays, reinstatements, cases dismissed, etc. Drug/Alcohol Testing The Department of Racing is authorized to require persons licensed to submit to testing when there is reason to believe they may be under the influence of or unlawfully in possession of any prohibited substance regulated by Title 13, Chapter 34, or has consumed alcohol in violation of A.A.C. R19-2-112(8) or (10) or R19-2-311(9). Testing Summary Human Drug Tests Positive Drug Tests Licensee Refused to Test Percent Positive Breath/Alcohol Tests Positive Breath/Alcohol Tests Percent Positive FY 2006 FY 2007 FY 2008 50 13 7 26% 8 8 100% 68 31 2 51% 2 2 100% 54 8 5 23% 2 1 50% ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 30 Racing Regulation Equine & Canine Drug Testing The Department contracts with independent laboratories for the analysis of equine urine and blood samples and canine urine samples. This analysis is required to enforce the rules of racing that prohibit animals from racing while under the influence of foreign substances. Testing Summary Equine Drug Testing Number positive equine drug tests Percent positive equine drug tests Canine Drug Testing Number positive canine tests Percent positive canine tests Totals Total Positive tests Percent Total positive tests FY 2006 FY 2007 FY 2008 48 1.8% 33 1.3% 33 1.4% 0 .00% 0 .00% 5 .11% 48 0.63% 33 0.44% 38 0.5% ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 31 Boxing Regulation The Boxing Commission regulates and supervises all boxing events conducted in Arizona to protect the participants in these events and to ensure compliance with the Boxing laws and regulations. The events include traditional boxing, kickboxing, tough man contests, and mixed martial arts. In 1992, the Arizona Department of Racing assumed responsibility for the financial administration of the Arizona State Boxing Commission. In this capacity, the Department collects and deposits State receipts associated with boxing. The Department collects a fee of four percent of the gross receipts after deduction of any federal, state, and local taxes generated from boxing matches. In FY 2008, the Department collected $10,750 in taxes generated from 10 boxing events in the State. The State Boxing Commission issued 458 licenses, and the Department collected a total of $8,255 in license fees from these applicants. Additionally, the State Boxing Commission entered into intergovernmental agreements with three Tribal organizations to supervise Boxing events conducted on Tribal land. The Arizona State Boxing Commission receives an average of $3,000 per event subject to these agreements. During FY 2008, the Boxing Commission regulated 15 of these events and collected $45,000 for their regulation. All Boxing Commission revenues are deposited into the General Fund. Sanctioned Events The Boxing Commission ensures that all events under Commission jurisdiction held in the State are sanctioned by the Arizona State Boxing Commission and that all participants are duly licensed. The Commission was authorized to approve up to 30 events in FY 2007. Performance Measures FY 2006 FY 2007 FY 2008 100% 35 280 100% 30 240 100% 25 200 Percent of bouts without serious injury to contestants Number of events sanctioned Number of bouts Licensing The Boxing Commission issues licenses to participate in Boxing to those who are qualified and eligible. Licenses are denied for those who are undesirable or statutorily prohibited from participating. FY 2006 FY 2007 FY 2008 792 99% 791 99% 458 99% Revenue Summary Taxes License Fees Fines Other (Tribal Agreements) $39,948 10,980 1,400 24,000 $24,731 11,595 1,200 33,000 $10,750 8,255 400 45,000 Total Revenue Collected $76,328 $67,526 $64,405 Performance Measures Number of licenses issued Percent of licenses issued for all applications ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 33 Boxing Regulation Investigations The Boxing Commission investigates all allegations of statutory and rule violations that may harm the athlete or the public. Performance Measures FY 2006 FY 2007 FY 2008 13 98% 8 99% 1 100% Number of investigations conducted Percent of investigations resulting in disciplinary action ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 34 Financial Issues ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT Department Of Racing Budget The Department of Racing’s expenditures for the last three fiscal years and the appropriated funds for FY 2009, including a summary of full-time and seasonal positions, are included below. Additional funds are necessary to enable the Department to provide the services required to regulate and support the racing industry in Arizona. Several administrative changes and modernization of the Department’s rules, policies, and procedures have been implemented or are being developed to allow the Department to provide better services to its customers, but appropriate regulation to maintain the integrity of the racing industry requires additional resources. The total Department of Racing budget for FY 2008 was $3,204,100. This represents an increase of $108,400, or 3.5%, from the prior budget period, mainly because of increases to the County Fair Racing Fund and Administration Fund appropriations. Nearly 83.9% of the Department’s FY 2008 budget was appropriated from the State General Fund. OPERATING BUDGET Full Time Equivalent Positions (FTE) Actual Exp Actual Exp Actual Exp Appropriation FY 2006 FY 2007 FY 2008 FY 2009 46.5 46.5 46.5 46.5 Full Time 33.0 33.0 33.0 33.0 Seasonal 13.5 13.5 13.5 13.5 Personal Services $1,768,713 $1,829,900 $1,838,000 $1,841,200 Employee Related Expenses (ERE) 471,583 580,700 583,300 491,900 Professional & Outside Services 239,900 231,200 207,200 274,900 Travel - In State 156,863 185,400 161,000 116,200 5,424 8,300 3,200 4,000 292,896 297,300 319,800 392,700 16,421 9,400 52,000 16,000 $2,951,800 $3,093,600 $3,164,500 $3,136,900 $2,606,800 $2,749,100 $2,661,600 $2,623,300 300,000 299,700 440,200 446,800 Travel - Out of State Other Operating Equipment AGENCY TOTAL FUND SOURCES General Fund Other Appropriated Funds County Fair Racing Fund Administration of Betterment & Breeders' Awards Fund SUBTOTAL AGENCY TOTAL 45,000 44,800 62,700 66,800 345,000 $2,951,800 344,500 $3,093,600 502,900 $3,164,500 513,600 $3,136,900 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 35 Department Budget 3,164,500 3,200,000 3,136,900 3,150,000 3,095,700 3,100,000 3,050,000 3,000,000 2,951,800 2,942,900 2,950,000 2,900,000 2,850,000 2,800,000 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Department Of Racing Revenues The Department of Racing collects pari-mutuel taxes, license fees and fines that are deposited into eight separate funds, the State General Fund and the Greyhound and Retired Race Horse Adoption Fund. Pari-mutuel taxes and license fees collected are deposited into eight separate funds as described below. Fines are deposited directly into the State General Fund, license fees collected from dog breeders and racing kennels are deposited into the Greyhound Adoption Fund and revenues collected from the 5% Retired Race Horse surcharge added to each horse racing-related fine are deposited into the Retired Race Horse Adoption Fund. See tables and charts on page 38. Distribution of Revenues to the Eight Separate Funds and Maximum Dollars Allowed Fund Distribution Annual Maximum County Fairs Livestock & Agriculture Promotion County Fairs Racing Betterment Breeders' Award Exposition and State Fair County Fair Racing Stallion Award Administration of Betterment & Breeders Awards Agricultural Consulting and Training 33% 22% 22% 11% 9% 1% 1% 1% $1,800,000 1,200,000 1,200,000 400,000 450,000 60,000 67,000 N/A Total Maximum Funding Allowed 100% $5,177,000 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 36 Revenues from pari-mutuel taxes decreased slightly in FY 2008. They decreased 0.4% or $1,845 when compared to FY 2007. Several tax breaks have been provided to the racing industry since 1995. The tax breaks listed below contribute, in part, to the current reduction in pari-mutuel tax revenues received from the racing industry when compared to revenues received a few years ago. • • • • Tax reductions for greyhound tracks. Exemption from State tax on dollars wagered on simulcast. Hardship tax credit for tracks, which have suffered a decline in business. Capital improvement program tax reduction. Additional funds are derived from the Arizona Department of Revenue transfer of unclaimed property funds to the Department of Racing. During FY 2008, the transfer was for $13.1 million. These dollars are distributed among the eight separate funds and enables the Department of Racing to reach the statutorily authorized levels for each fund. The dollars remaining are deposited into the General Fund, which received $8.2 million in FY 2008, from the Department of Racing’s portion of unclaimed property dollars. As the pari-mutuel tax revenues decline, the contributions from the unclaimed property fund to each of the eight funds increase. This in turn, reduces the funds available for the State’s General Fund. Therefore, the unclaimed property funds become increasingly more important to the continuation of the programs supported by these eight funds and the State’s General Fund. See tables and charts on page 39. The seven funds summarized on page 40 are the funds administered by the Department of Racing for various programs. The County Fairs Livestock & Agriculture Promotion Fund, the Exposition and State Fair Fund, and the Agricultural Consulting and Training Fund are administered by other State programs, as described below. • County Fairs Livestock & Agriculture Promotion Fund …………………Governor’s Office • Exposition and State Fair Fund ………………………..Arizona Exposition and State Fair • Agricultural Consulting and Training Fund ……………Arizona Department of Agriculture ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 37 Distribution of Department of Racing Revenues General Fund Breeders' Award County Fairs Racing Betterment Agriculture Promotion Exposition and State Fair County Fair Racing Administration of Betterment and Breeders' Award Stallion Award Agricultural Consulting/Training Horse Adoption Greyhound Adoption Total Distribution FY 2004 $3,657,354 800,000 800,000 1,200,000 400,000 300,000 FY 2005 $4,640,891 800,000 800,000 1,200,000 400,000 300,000 FY 2006 $5,807,008 800,000 800,000 1,200,000 400,000 300,000 FY 2007 $11,823,953 800,000 800,000 1,200,000 400,000 300,000 FY 2008 $8,380,332 1,200,000 1,200,000 1,800,000 400,000 450,000 45,000 40,000 72,508 45,000 40,000 82,006 45,000 40,000 94,480 1,186 2,825 $9,490,499 45,000 40,000 100,800 1,800 300 $15,511,853 67,000 60,000 154,034 3,200 200 $13,714,766 N/A N/A 75 $7,314,937 150 $8,308,047 Distribution of Department of Racing Revenues FY 2008 General Fund 61.1% Agricultural Consulting/Training Fund 1.1% Breeders' Award Fund 8.7% County Fairs Racing Betterment Fund 8.7% Greyhound Adoption Fund 0.0% Horse Adoption 0.0% Agriculture Promotion Fund 13.1% Stallion Award Fund 0.4% Exposition and State Fair Fund 2.9% Administration of Betterment & Breeders' Awards Fund 0.5% County Fair Racing Fund 3.3% Total Department Revenues by Fiscal Year General Fund Revenues by Fiscal Year $11,823,953 $15,511,853 $16,000,000 $12,000,000 $13,714,766 $14,000,000 $10,000,000 $12,000,000 $8,000,000 $10,000,000 $8,000,000 $8,380,332 $9,490,499 $5,807,008 $8,308,047 $7,314,937 $4,640,891 $6,000,000 $3,657,354 $6,000,000 $4,000,000 $4,000,000 $2,000,000 $2,000,000 $0 $0 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2004 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 38 FY 2005 FY 2006 FY 2007 FY 2008 Department of Racing Revenues by Category FY 2004 State Unclaimed Property Pari-Mutuel Tax License Fees Fines Boxing Tax Other Total FY 2005 FY 2006 FY 2007 FY 2008 $7,530,279 565,191 130,900 50,748 21,929 9,000 $8,706,424 483,901 193,974 58,073 29,116 19,011 $9,453,500 527,860 74,500 49,000 39,900 28,500 $14,899,237 431,501 82,856 45,870 24,730 27,659 $13,082,514 429,592 176,844 42,086 10,750 (27,020) $8,308,047 $9,490,499 $10,173,260 $15,511,853 $13,714,766 Department of Racing Revenues by Category FY 2008 State Unclaimed Property 95.4% Pari-Mutuel Tax 3.1% Other -0.2% State Unclaimed Property Transfers by Fiscal Year Pari-Mutuel Tax Revenue by Fiscal Year $600,000 License Fees 1.3% Fines 0.3% Boxing Tax 0.1% $565,191 $14,899,237 $16,000,000 $527,860 $13,082,514 $14,000,000 $483,901 $500,000 $431,501 $429,592 $12,000,000 $9,453,500 $400,000 $8,706,424 $10,000,000 $7,530,279 $8,000,000 $300,000 $6,000,000 $200,000 $4,000,000 $100,000 $2,000,000 $0 $0 2004 2005 2006 2007 2004 2008 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 39 2005 2006 2007 2008 FY 2008 Appropriated and Non-Appropriated Funds DESCRIPTION OF FUNDS FY 2007 FY 2008 County Fair Racing (RCA2170 / A.R.S. 5-113) APPROPRIATED Source of Revenue: Receives 9% of revenue derived from pari-mutuel receipts, license fees, and unclaimed property (maximum of $450,000). Purpose of Fund: For the administration of county fair racing. FUNDS SPENT $299,700 $440,200 Administration of County Fair Racing & Breeders Awards Fund (RCA2018 / A.R.S. 5-113) APPROPRIATED Source of Revenue: Receives 1% of revenue derived from pari-mutuel receipts, license fees, and unclaimed property (maximum of $67,000). Purpose of Fund: To administer the Arizona County Fairs Racing Betterment program, the Arizona Breeders' Award program, the Arizona Stallion Awards program, and the Retired Greyhound and Racehorse Adoption program. FUNDS SPENT $44,800 $62,700 $983,700 $1,070,619 County Fair Racing Betterment (RCA2207 / A.R.S. 5-113) NON-APPROPRIATED Source of Revenue: Receives 22% of revenue derived from pari-mutuel receipts, license fees, and unclaimed property (maximum of $1.2 million). Purpose of Fund: To promote county fair racing by providing a grant to each eligible county fair association that conducts a racing meeting. FUNDS SPENT $1,113,400 $1,119,200 Greyhound Adoption (RCA2015 / A.R.S. 5-113) NON-APPROPRIATED Source of Revenue: License fees collected from dog breeders, racing kennels, and other operations where greyhounds are raised for dog racing. Purpose of Fund: To provide grants to non-profit organizations to promote the adoption of retired racing greyhounds as domestic pets. FUNDS SPENT $0 $1,250 Retired Racehorse Adoption (RCA2015 / A.R.S. 5-113) NON-APPROPRIATED Source of Revenue: A 5% Retired Race Horse Surcharge is levied against each horse racing-related fine Purpose of Fund: To provide grants to non-profit organizations to promote the adoption of retired racehorses. FUNDS SPENT $2,500 $1,496 $43,100 $96,369 Arizona Breeders Awards (RCA2206 / A.R.S. 5-113) NON-APPROPRIATED Source of Revenue: Receives 22% of revenue derived from pari-mutuel receipts, license fees, and unclaimed property (maximum of $1.2 million). Purpose of Fund: To encourage the breeding industry in Arizona by awarding breeders of winning racehorses and greyhounds in this state. FUNDS SPENT Stallion Awards (RCA2315 / A.R.S. 5-113) NON-APPROPRIATED Source of Revenue: Receives 1% of revenue derived from pari-mutuel receipts, license fees, and unclaimed property (maximum of $60,000). Purpose of Fund: To encourage the breeding industry in Arizona by awarding owners or lessees of stallion horses in this state. FUNDS SPENT ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 40 Department of Racing Pari-Mutuel Tax and Hardship Tax Credit Projections The revenue projections developed by the Department of Racing and included in the tables below are based on historical levels and industry trends and assume the continued operation of each of Arizona’s commercial race tracks. These tables indicate anticipated State pari-mutuel taxes from dollars wagered over the next three fiscal years. The tables also provide actual and estimated amounts for the Hardship Tax Credit during the next three fiscal years. FY 2010 Estimated Pari-Mutuel Tax and Hardship Tax Credit TRACK ESTIMATED ESTIMATED ESTIMATED TAX DUE ESTIMATED BASE BASE YEAR FY 2009 AMOUNT FY 2009 % PARI-MUTUEL BASED ON FY 2010 YEAR AMOUNT WAGERED DECREASE TAX DUE CARRYOVER FY 2010 FROM FY 2009 TAX CREDIT WITH % DECREASE HARDSHIP CREDIT HARDSHIP TAX FY 2009 CREDIT CARRYOVER HORSE TRACKS: Fort Tuthill Downs FY 1994 $798,671 $0 -100.00% $0 $0 $0 $7,320 $7,320 Rillito Park FY 1990 3,887,981 0 -100.00% 0 0 0 165,088 165,088 Turf Paradise FY 1994 101,467,993 Yavapai Downs FY 1994 128,250,000 26.39% 452,907 0 0 0 0 17,490,826 35,000,000 100.10% 105,039 0 0 0 0 FY 1990 $12,262,396 $5,100,000 -58.41% $0 $0 $0 $360,850 $360,850 46,400,000 -51.51% 1,511,196 778,384 2,649,781 3,849,859 6,185,012 16,250,000 -57.36% 221,515 127,062 417,619 2,180,529 2,561,716 GREYHOUND TRACKS: Apache Greyhound Park Phoenix Greyhound Park FY 1990 Tucson Greyhound Park 49,391,582 FY 1994 46,293,967 FY 1990 38,110,346 FY 2011 Estimated Pari-Mutuel Tax and Hardship Tax Credit TRACK ESTIMATED ESTIMATED ESTIMATED TAX DUE ESTIMATED BASE BASE YEAR FY 2010 AMOUNT FY 2010 % PARI-MUTUEL BASED ON FY 2011 YEAR AMOUNT WAGERED DECREASE TAX DUE CARRYOVER FY 2011 FROM FY 2010 TAX CREDIT WITH % DECREASE HARDSHIP CREDIT HARDSHIP TAX FY 2010 CREDIT CARRYOVER HORSE TRACKS: Fort Tuthill Downs FY 1994 $798,671 $0 -100.00% $0 $0 $0 $7,320 $7,320 Rillito Park FY 1990 3,887,981 0 -100.00% 0 0 0 165,088 165,088 Turf Paradise FY 1994 101,467,993 Yavapai Downs FY 1994 131,456,200 29.55% 464,229 0 0 0 0 17,490,826 36,750,000 110.11% 110,291 0 0 0 0 FY 1990 $12,262,396 $5,227,500 -57.37% $0 $0 $0 $360,850 $360,850 45,472,000 -52.48% 1,480,972 777,180 2,331,540 4,704,040 7,035,579 16,656,250 -56.29% 227,053 127,819 383,456 2,334,663 2,718,119 GREYHOUND TRACKS: Apache Greyhound Park Phoenix Greyhound Park FY 1990 Tucson Greyhound Park 49,391,582 FY 1994 46,293,967 FY 1990 38,110,346 FY 2012 Estimated Pari-Mutuel Tax and Hardship Tax Credit TRACK ESTIMATED ESTIMATED ESTIMATED TAX DUE ESTIMATED BASE BASE YEAR FY 2011 AMOUNT FY 2011 % PARI-MUTUEL BASED ON FY 2012 YEAR AMOUNT WAGERED DECREASE TAX DUE CARRYOVER FY 2012 FROM FY 2011 TAX CREDIT WITH % DECREASE HARDSHIP CREDIT HARDSHIP TAX FY 2011 CREDIT CARRYOVER HORSE TRACKS: Fort Tuthill Downs FY 1994 $798,671 $0 -100.00% $0 $0 $0 $7,320 $7,320 Rillito Park FY 1990 3,887,981 0 -100.00% 0 0 0 165,088 165,088 Turf Paradise FY 1994 101,467,993 Yavapai Downs FY 1994 134,742,656 32.79% 475,835 0 0 0 0 17,490,826 38,587,500 120.62% 115,805 0 0 0 0 FY 1990 $12,262,396 $5,358,188 -56.30% $0 $0 $0 $360,850 $360,850 44,562,560 -53.43% 1,451,353 775,431 2,326,292 5,584,226 7,910,518 17,072,656 -55.20% 232,729 128,471 385,413 2,485,390 2,870,804 GREYHOUND TRACKS: Apache Greyhound Park Phoenix Greyhound Park FY 1990 Tucson Greyhound Park 49,391,582 FY 1994 46,293,967 FY 1990 38,110,346 ________________________________________________________________ ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 41 Hardship Tax Credit The Department of Racing determines the amount, if any, of a Hardship Tax Credit available to the commercial horse and greyhound permittees. This credit supports the pari-mutuel industry by responding to the reduction in wagering that has occurred and offsetting the tax due the State. Determination of the FY 2009 Hardship Tax Credit Based on the FY 2008 Dollars Wagered FY 2008 TRACK FY 2008 FY 2008 TAX DUE FY 2009 CARRYOVER FY 2009 TAX CREDIT WITH BASE BASE YEAR AMOUNT % PARI-MUTUEL BASED ON HARDSHIP FROM FY 2008 YEAR AMOUNT WAGERED DECREASE TAX DUE % DECREASE TAX CREDIT HARDSHIP TAX FY 2008 CREDIT CARRYOVER HORSE TRACKS: Fort Tuthill Downs FY 1994 $798,671 $0 -100.00% $0 $0 $0 $7,320 Rillito Park FY 1990 3,887,981 0 -100.00% 0 0 0 165,088 Turf Paradise FY 1994 26.35% 441,860 0 0 0 0 Yavapai Downs FY 1994 17,490,826 99.49% 100,037 0 0 0 0 $0 101,467,993 128,203,760 34,892,032 $7,320 165,088 GREYHOUND TRACKS: Apache Greyhound Park FY 1990 $12,262,396 $5,066,332 -58.68% $0 Phoenix Greyhound Park FY 1990 49,391,582 46,397,234 -51.51% 1,590,733 FY 1994 46,293,967 FY 1990 38,110,346 16,269,619 -57.38% 216,112 Tucson Greyhound Park $0 $360,850 $360,850 819,398 2,458,194 2.982,398 5,440,592 124,004 2,024,628 2,396,641 372,013 Department of Racing Pari-Mutuel Tax Revenue - FY 2008 TRACK ALLOWABLE FY 2008 FY 2008 HARDSHIP CREDITS HANDLE PARI-MUTUEL TAX DUE $0 $0 IN FY 2008 FY 2008 CAPITAL FY 2008 FY2008 FY 2008 FY 2008 IMPROVEMENT HARDSHIP COUNTY FAIR CHARITY PARI-MUTUEL TAX WITHHOLDINGS TAX CREDIT CREDITS DAYS REVENUE HORSE TRACKS: Rillito Park $165,088 $0 $0 $0 $0 $0 429,592 Turf Paradise 0 128,203,760 441,860 0 0 0 12,268 Yavapai Downs 0 34,892,032 100,037 100,037 0 0 0 0 $165,088 $163,095,792 $541,897 $100,037 $0 $0 $12,268 $429,592 Subtotal Horse Tracks GREYHOUND TRACKS: Apache Greyhound Park $360,850 $5,066,332 $0 $0 $0 $0 $0 $0 Phoenix Greyhound Park 4,423,417 46,397,234 1,590,733 0 1,551,585 0 39,147 0 Tucson Greyhound Park 2,432,446 16,269,619 216,112 0 216,112 0 0 0 Subtotal Greyhound Tracks $7,216,713 $67,733,185 $1,806,845 $0 $1,806,845 $0 $39,147 $0 GRAND TOTAL $7,381,801 $230,828,977 $2,348,742 $100,037 $1,806,845 $0 $51,415 $429,592 ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 42 Track Capital Improvements The Department was authorized by statute to encourage the improvement of racing facilities by reducing the pari-mutuel tax due the State. The percentages paid the State by the permittee was reduced by 1% of the total amount wagered in counties with a population over 500,000 and 27% in all other counties. Prior approval of the Racing Commission for the capital improvement proposed was required to qualify for the reduction. This provision expired on June 30, 1992 for counties with populations of 500,000 or more and on June 30, 1999 for counties with populations of less than 500,000 according to the previous United States decennial census. The capital improvement dollars for projects approved before the expiration date may continue to be deducted from the pari-mutuel tax due until exhausted. The following table show dollars deducted by all racetracks during FY 2008. The only racetrack which has not exhausted the dollars approved is Yavapai Downs. Permittee Prescott Downs (Yavapai Downs) Other Permittees Project Description Grandstand & Clubhouse Structure, etc. Improvement Dollars Cumulative Dollars Deducted Dollars Approved FY 2008 Deducted $52,196,636 $100,037 $0 $0 $676,354 $51,520,282 $0 $0 This table excludes permittees that have used all approved capital improvement dollars. ARIZONA DEPARTMENT OF RACING FY 2008 ANNUAL REPORT 43 Remaining Dollars Approved